WASHINGTON: A US House panel unveiled bipartisan legislation this week that would authorise $1 billion for small and rural wireless providers to replace network equipment from companies including Huawei Technologies Co Ltd and ZTE Corp that lawmakers say pose a national security risk.
The legislation is similar to a bill approved in July by the US Senate Commerce Committee that would authorise about $700 million in grants to remove Huawei equipment, in a bid to boost the security of the US telecommunication network’s supply chain.
The top Democrats and Republicans on the House Energy and Commerce Committee said in a joint statement the bill would protect the “nation’s communications networks from foreign adversaries by helping small and rural wireless providers root-out suspect network equipment and replace it with more secure equipment.” The panel will hold a hearing on the bill on Friday.
About a dozen rural US telecom carriers that depend on Huawei for network gear were in discussions with its biggest rivals, Ericsson and Nokia, to replace their Chinese equipment, sources familiar with the matter said in June.
In May, President Donald Trump signed a long-awaited executive order declaring a national emergency and barring US companies from using telecommunications equipment made by firms posing a national security risk. The order directed the Commerce Department, working with other government agencies, to draw up an enforcement plan by October.
The government blacklisted Huawei, alleging the Chinese company was involved in activities contrary to US national security or foreign policy interests. In August, the Commerce Department added more than 40 additional Huawei’s units to its economic blacklist, raising the total to more than 100 Huawei entities covered by the restrictions. — Reuters
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